OJK Conveys Several Steps To Maintain Financial Sector Stability

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar. (Photo: Doc. ANTARA)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar conveyed a number of steps to maintain stability and increase the role of the financial services sector for national economic growth.

First, the OJK will continue to pay close attention to the market risk development of Financial Services Institutions (LJK) and financing to sectors that have high exposures related to the impact of increasing geopolitical tensions in the Middle East, including observing the conditions of the financial services sector.

"In addition, the OJK continues to carry out optimal supervision to ensure that the risk of exchange rates and interest rates on each LJK can be properly mitigated," Mahendra said as quoted by ANTARA, Friday, May 3.

Second, OJK which has ended its banking credit restructuring policy due to the COVID-19 pandemic, which is not expected to have a significant impact on each financial services sector, considering that the financial services industry has formed reserves at an adequate level.

As economic activity improved post-pandemic, the need for credit restructuring policies was decreasing, so the OJK ended its relaxation policy to mitigate the pandemic's scarring effect.

This includes credit restructuring policies due to the continued impact of COVID-19 on the banking industry and financing companies as previously stipulated.

In order to increase the competitiveness of national banks and maintain financial system stability, continued Mahendra, OJK issued changes to OJK Regulation (POJK) Number 5 of 2024 regarding the determination of the status of supervision and handling of general bank problems.

OJK has also issued POJK Number 4 of 2024 concerning Ownership Reports or Any Changes in Public Company Share Ownership and Activity Reports Guarantee Open Company Shares.

Finally, OJK has launched a roadmap in an effort to create a healthy, strong, with integrity, and adaptive financing industry for technological developments. OJK has carried out the registration process for innovative business clusters that have been set to be regulated and supervised by the OJK.

In addition, the OJK is also formulating policies related to the application of artificial intelligence (AI) in the financial sector, including Financial Services Sector Technology Innovation (ITSK).